18 The graph below represents the costs and the returns of this hypothetical cattle feeding scenario....

 

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18 The graph below represents the costs and the returns of this hypothetical cattle feeding scenario. The table is based on one head of cattle. Feed Required (lbs) (lbs) 0 500 1,100 1,700 2,300 2,900 3,500 4,100 4,700 5,300 5,900 6,700 7,300 Weight Gain Selling 0 100 200 290 380 470 550 625 695 765 825 865 900 Weight (lbs) 600 700 800 890 980 1070 1150 1225 1295 1365 1425 1465 1500 Total Revenue (hd) Average Physical Product $840.00 XXX $980.00 0.200 $1,000.00 0.182 $1,112.50 0.171 $1,176.00 0.165 $1,284.00 0.162 $1,322.50 0.157 $1,372.00 0.152 $1,450.40 0.148 $1,542.45 0.144 $1,610.25 0.140 $1,582.20 0.129 $1,620.00 0.123 Marginal Physical Product XXX 0.200 0.167 0.150 0.150 0.150 0.133 0.125 0.117 0.117 0.100 0.071 0.054 Marginal Marginal Value Product Input Cost XXX 0.280 0.033 0.188 0.106. 0.180 0.064 0.083 0.131 0.153 0.113 0.028 0.007 XXX 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Using what you have learned about marginal principles, answer the following questions based on the data in the table above: 1. What is the profit-maximizing weight at which to sell fed cattle? Why? 2. What factors (list two) contribute to the declining profits at the higher market weight levels? 3. Hint: Figure the profit levels for each line on the chart to help you determine your answers. Here is the MS Excel file I used to create the table if you would like to reference it. BUS-336 Cattle Feeding Problem.xlsx 18 The graph below represents the costs and the returns of this hypothetical cattle feeding scenario. The table is based on one head of cattle. Feed Required (lbs) (lbs) 0 500 1,100 1,700 2,300 2,900 3,500 4,100 4,700 5,300 5,900 6,700 7,300 Weight Gain Selling 0 100 200 290 380 470 550 625 695 765 825 865 900 Weight (lbs) 600 700 800 890 980 1070 1150 1225 1295 1365 1425 1465 1500 Total Revenue (hd) Average Physical Product $840.00 XXX $980.00 0.200 $1,000.00 0.182 $1,112.50 0.171 $1,176.00 0.165 $1,284.00 0.162 $1,322.50 0.157 $1,372.00 0.152 $1,450.40 0.148 $1,542.45 0.144 $1,610.25 0.140 $1,582.20 0.129 $1,620.00 0.123 Marginal Physical Product XXX 0.200 0.167 0.150 0.150 0.150 0.133 0.125 0.117 0.117 0.100 0.071 0.054 Marginal Marginal Value Product Input Cost XXX 0.280 0.033 0.188 0.106. 0.180 0.064 0.083 0.131 0.153 0.113 0.028 0.007 XXX 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Using what you have learned about marginal principles, answer the following questions based on the data in the table above: 1. What is the profit-maximizing weight at which to sell fed cattle? Why? 2. What factors (list two) contribute to the declining profits at the higher market weight levels? 3. Hint: Figure the profit levels for each line on the chart to help you determine your answers. Here is the MS Excel file I used to create the table if you would like to reference it. BUS-336 Cattle Feeding Problem.xlsx

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